Company Registration No. 00274385 (England and Wales)
SNAPE & SON (BILSTON) LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
PAGES FOR FILING WITH REGISTRAR
SNAPE & SON (BILSTON) LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
4 - 9
SNAPE & SON (BILSTON) LIMITED
BALANCE SHEET
AS AT
31 MARCH 2019
31 March 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Investment properties
4
950,000
1,050,000
Current assets
Debtors
1,126
-
Cash at bank and in hand
3,822
30,196
4,948
30,196
Creditors: amounts falling due within one year
6
(37,121)
(86,836)
Net current liabilities
(32,173)
(56,640)
Total assets less current liabilities
917,827
993,360
Creditors: amounts falling due after more than one year
7
(597,161)
(618,738)
Provisions for liabilities
(54,244)
(71,244)
Net assets
266,422
303,378
Capital and reserves
Called up share capital
9
5,000
5,000
Profit and loss reserves
261,422
298,378
Total equity
266,422
303,378
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 March 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
SNAPE & SON (BILSTON) LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2019
31 March 2019
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 12 September 2019 and are signed on its behalf by:
Mr E G C Snape
Director
Company Registration No. 00274385
SNAPE & SON (BILSTON) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2019
- 3 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2017
5,000
192,702
197,702
Year ended 31 March 2018:
Profit and total comprehensive income for the year
-
105,676
105,676
Balance at 31 March 2018
5,000
298,378
303,378
Year ended 31 March 2019:
Loss and total comprehensive income for the year
-
(36,956)
(36,956)
Balance at 31 March 2019
5,000
261,422
266,422
SNAPE & SON (BILSTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
- 4 -
1
Accounting policies
Company information
Snape & Son (Bilston) Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
60-66 Wardour Street, London, W1F 0TA.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the rent receivable from investment property provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
1.4
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure
. Subsequently it is measured
at fair value a
t
the reporting end date.
The surplus or deficit on revaluation is recognised in profit or loss.
Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.
1.5
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
SNAPE & SON (BILSTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
1
Accounting policies
(Continued)
- 5 -
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
SNAPE & SON (BILSTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
1
Accounting policies
(Continued)
- 6 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was as follows:
2019 2018
Average number of employees 3 3
3
Directors' remuneration
2019
2018
£
£
Remuneration for qualifying services
1,632
1,500
SNAPE & SON (BILSTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
- 7 -
4
Investment property
2019
£
Fair value
At 1 April 2018
1,050,000
Net gains or losses through fair value adjustments
(100,000)
At 31 March 2019
950,000
The investment property was assessed on behalf of the directors by the surveyor Andrew Oliver
MRICS on 2 June 2014. More recently, the director, Mr E B Farrar, qualified MRICS chartered surveyor
has valued the property at fair value as at the balance sheet date. The valuation was made on an open
market value basis by reference to market evidence of transaction prices for similar properties.
5
Operating lease commitments
The company owns a
n
investment property for rental purposes. Rental income earned during the year
was £
82,107
(201
8
: £
82,061
) (subject to review in accordance with the terms of the lease) and direct
operating expenses arising on the properties in the period was £
7,258
(201
8
: £8,5
17
). All of the
properties have committed tenants for the next
6
years. All operating lease contracts contain market
review clauses in the event that the lessee exercises its option to renew. The lessee does not have an
option to purchase the property at the expiry of the lease period.
6
Creditors: amounts falling due within one year
2019
2018
Notes
£
£
Deferred income
-
8,000
Other creditors
31,931
73,560
Accruals and deferred income
5,190
5,276
37,121
86,836
There are fixed and floating charges over the company's property held by a bank lender in respect of a balance of £31,831 (2018: £62,061) included within other creditors.
7
Creditors: amounts falling due after more than one year
2019
2018
£
£
Other creditors
597,161
618,738
There are fixed and floating charges over the company's property held by a bank lender in respect of a balance of £216,059 (2018: £242,812) included within other creditors.
SNAPE & SON (BILSTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
- 8 -
8
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2019
2018
Balances:
£
£
Revaluations
54,244
71,244
2019
Movements in the year:
£
Liability at 1 April 2018
71,244
Credit to profit or loss
(17,000)
Liability at 31 March 2019
54,244
9
Share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
2,500 Ordinary A Shares of £1 each
2,500
2,500
2,500 Ordinary B Shares of £1 each
2,500
2,500
5,000
5,000
SNAPE & SON (BILSTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
- 9 -
10
Related party transactions
J W G Snape
A shareholder and relative of E G C Snape.
During the year, J W G Snape loaned the company £Nil (2018: £Nil), was repaid £7,000 (2018: £Nil), and charged the company loan interest of £1,466 (2018: £1,433). At the balance sheet date, the company owed J W G Snape £29,227 (2018: £34,760).
E G C Snape
A director of the company.
During the year, E G C Snape loaned the company £Nil (2018: £100.000), was repaid £Nil (2018: £Nil) and charged the company loan interest of £8,179 (2018: £10,076). At the balance sheet date, the company owed E G C Snape £198,396 (2018: £190,216).
E B Farrar
A director of the company.
During the year, E B Farrar loaned the company £Nil (2018: £Nil), was repaid £Nil (2018: £Nil) and charged the company loan interest of £4,996 (2018: £4,790). At the balance sheet date, the company owed E B Farrar £121,185 (2018: £116,189).
J Milner
A relative of the director.
During the year, J Miler loaned the company £Nil (2018: £Nil), was paid £949.26 (2018: £12,060) and charged the company loan interest of £Nil (2018: £165). At the balance sheet date, J Miler owed the company £949.26 (2018: £Nil).
J M Snape
A relative of the director.
During the year, J M Snape loaned the company £Nil (2018: £Nil), was repaid £3,000 (2018: £Nil), and charged the company loan interest of £1,482 (2018: £1,433). At the balance sheet date, the company owed J M Snape £33,243 (2018: £34,760).
11
Ultimate Controlling Party
The ultimate controlling party is shared between E B Farrar and Ms C Barker by the virtue of their
ownership in the company's share capital.